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STATEMENT OF DONALD PAUL HODEL--I am pleased to appear before you today, as the Secretary of the Interior, in support of the President's FY 1986 Budget for the Department. During my tenure as the Secretary of Energy and as Under Secretary of the Interior, I sought to establish a good working relationship with this Subcommittee. Now, at the beginning of President Reagan's second term, I have been given the privilege of serving as Secretary of the Interior and of having the opportunity to work with you to resolve the critical resource issues confronting this Nation. I have the good fortune of having some familiarity with the Department of the Interior. Having spent 21 months as Under Secretary, and having served for six years as Administrator of the Bonneville Power Administration, I recognize many of the current issue categories. However, I have to learn — and in some cases relearn — specifics. In that process, I look forward to working with the knowledgeable, dedicated professionals at the Department. I believe the Nation is best served when we have a clear consensus on broad policies that govern the everyday actions of the Executive branch. The Nation is not well served by emotional confrontation or impasse on basic policy. My goal at the Department is to build a national consensus on the broad policy issues which face the Department. I intend to do this by effectively communicating the Administration's priorities; consulting early and frequently with the Congress, State and local governments, and other interested parties; and striving to reach a consensus on the President's broad policy objectives: conserving the Nation's national park, wilderness and wildlife resources; enhancing America's ability to meet our energy and mineral needs with domestic resources; increasing the supply of quality water resources; improving the Federal Government's relationship with State and local governments; and developing the economic and social resources of American Indians, Alaska Natives, and the people of the U.S. Territories. Certainly I recognize there will be conflicts and controversies surrounding individual actions and peripheral issues — that is the nature of the issues facing this Department. But, at the same time, I want to work closely with you in establishing the broad national resource policies that reflect the values, needs, and wishes of the American people. The 1986 budget reflects not only the Administration's objectives, but also the overriding financial realities we face as a Nation — a budget deficit which totals $180 billion. This deficit requires making, and through this budget we have made, difficult policy choices. Those choices have meant reducing or eliminating many programs which have produced tangible benefits and which, evaluated on their own merits in a different budget context, would be funded. The details of the budget have to be considered, however, not in isolation but, rather, in the context of the financial realities with which we must grapple. If there is consensus on one broad national policy, it is the need to reduce the deficit. It is with this consensus regarding deficit reduction in mind that I have reviewed the Interior Department's budget and programs for FY 1986. This budget, $5.6 billion in budget authority and $6.2 billion in outlays, will allow us to exercise our stewardship responsibilities. The reductions of 15 percent in budget authority and 10 percent in outlays from the FY 1985 levels will require us to be more efficient and innovative in order to do all that we would agree is desirable. These reductions will require us to recognize more fully the appropriate role and responsibility of State and local governments and to cooperate more effectively with the private sector.

STATEMENT OF DONALD PAUL HODEL--I am pleased to appear before you today, as the Secretary of the Interior, in support of the President's FY 1986 Budget for the Department. During my tenure as the Secretary of Energy and as Under Secretary of the Interior, I sought to establish a good working relationship with this Subcommittee. Now, at the beginning of President Reagan's second term, I have been given the privilege of serving as Secretary of the Interior and of having the opportunity to work with you to resolve the critical resource issues confronting this Nation. I have the good fortune of having some familiarity with the Department of the Interior. Having spent 21 months as Under Secretary, and having served for six years as Administrator of the Bonneville Power Administration, I recognize many of the current issue categories. However, I have to learn — and in some cases relearn — specifics. In that process, I look forward to working with the knowledgeable, dedicated professionals at the Department. I believe the Nation is best served when we have a clear consensus on broad policies that govern the everyday actions of the Executive branch. The Nation is not well served by emotional confrontation or impasse on basic policy. My goal at the Department is to build a national consensus on the broad policy issues which face the Department. I intend to do this by effectively communicating the Administration's priorities; consulting early and frequently with the Congress, State and local governments, and other interested parties; and striving to reach a consensus on the President's broad policy objectives: conserving the Nation's national park, wilderness and wildlife resources; enhancing America's ability to meet our energy and mineral needs with domestic resources; increasing the supply of quality water resources; improving the Federal Government's relationship with State and local governments; and developing the economic and social resources of American Indians, Alaska Natives, and the people of the U.S. Territories. Certainly I recognize there will be conflicts and controversies surrounding individual actions and peripheral issues — that is the nature of the issues facing this Department. But, at the same time, I want to work closely with you in establishing the broad national resource policies that reflect the values, needs, and wishes of the American people. The 1986 budget reflects not only the Administration's objectives, but also the overriding financial realities we face as a Nation — a budget deficit which totals $180 billion. This deficit requires making, and through this budget we have made, difficult policy choices. Those choices have meant reducing or eliminating many programs which have produced tangible benefits and which, evaluated on their own merits in a different budget context, would be funded. The details of the budget have to be considered, however, not in isolation but, rather, in the context of the financial realities with which we must grapple. If there is consensus on one broad national policy, it is the need to reduce the deficit. It is with this consensus regarding deficit reduction in mind that I have reviewed the Interior Department's budget and programs for FY 1986. This budget, $5.6 billion in budget authority and $6.2 billion in outlays, will allow us to exercise our stewardship responsibilities. The reductions of 15 percent in budget authority and 10 percent in outlays from the FY 1985 levels will require us to be more efficient and innovative in order to do all that we would agree is desirable. These reductions will require us to recognize more fully the appropriate role and responsibility of State and local governments and to cooperate more effectively with the private sector.